Virgin America Flights from SFO to Begin in August

Virgin America, the low-cost airline started by British billionaire Richard Branson and his Virgin Group, will begin flights from SFO to New York and L.A. in August. On July 11 the Department of Transportation authorized the airline to begin selling tickets and the Federal Aviation Administration certified its jets as safe to fly.

The airline will fly from SFO to JFK International Airport in New York, then expand to begin flights to San Diego, Las Vegas, Los Angeles and Washington, D.C., within the first year of service.

The DOT had previously blocked Virgin America’s application, citing U.S. laws limiting foreign ownership of the nation’s airlines to 25 percent. Branson’s Virgin Group Ltd. is among Virgin America’s primary financial backers, which raised the issue that foreign control would be exerted over the U.S. airline.

After initially denying Virgin approval to begin flying earlier this year, federal regulators approved the airline’s revised structure in May after Virgin America made concessions to minimize Branson’s control. President and CEO Fred Reid, Branson’s choice to run the airline, will step down by November as part of the reorganization.

Virgin America chose SFO as its home airport in June 2004, basing its headquarters in Burlingame. The airline’s bid to win approval was supported by many Bay Area elected officials, who touted the boost to the local economy and new jobs created by the airline.

The San Mateo County Central Labor Council’s Airport Labor Coalition wrote to elected officials in February for support in making sure that Virgin does not undermine the gains won by unionized workers at SFO: “Flight attendants, pilots, mechanics, ramp workers and others represented by the Airport Labor Coalition have worked to negotiate strong union contracts that provide livable wages, decent benefits and job security. Low-paying non-union jobs which provide little or no benefits threaten that progress as airlines are given the ability to undermine the overall quality of life for working people,” wrote ALC Coordinator Christa Indriolo and San Mateo County Central Labor Council Executive Secretary-Treasurer Shelley Kessler.

“If Virgin America receives a certificate to operate, we want to ensure that they will be a responsible community partner by allowing workers to unionize without interference and by paying their employees a high standard of wages and benefits that all working people deserve. We also hope we have your support in holding Virgin accountable to those standards,” they wrote.

Supervisor Adrienne Tissier wrote in response in March that she supported bringing Virgin America to San Mateo County because it will bring new jobs to the community. She added that she thought having the start-up based at SFO was better than having it based, “... in another state where labor conditions are far less favorable to the fair representation of workers. By starting a new airline in the San Francisco Bay Area, I believe that we will not only bring high paying, needed jobs to residents of our community, but also bring employees generally the best opportunity to have outstanding representation of a labor union.”

Machinists Local 1782 President Greg Brown said that his union, which represents customer service employees at United Airlines, would launch an organizing drive at Virgin America as soon as it starts operating. He said that the airline’s starting pay is very low and the company has already contracted with a non-union subcontractor for ramp services.

“We want Virgin to abide by the Quality Standards Program at the airport, which includes paying a living wage and honoring card-check recognition for unionization,” Brown said.